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Step-By-Step Procedures for Disposal of Surplus PropertyMethodUse ForSteps: Board ActionSteps: AdvertisementSteps: OtherCOMPETITIVE METHODSA. Sealed bids(G.S. 160A-268,referencing G.S. 143-129)Real property;Personal property(1) Board adopts resolutionauthorizing sale(3) Sealed bids received.B. Upset bids(G.S. 160A-269)Real property;Personal property(2) Advertisement for bidspublished at least 30 daysbefore the bid opening forreal property; 7 days forpersonal property(4) Advertisement for upsetbids published, includingoriginal bid amount andrequiring bidders to upsetoriginal bid amount by atleast 10% of the first 1000,and 5% of the remainder.Example: original bid was 3000, upset bid must bemore than 10% of 1000plus 5% of 2000 over theoriginal bid at least 3200. Bidders given 10days from date ofadvertisement to submit upsetbids.C. Public auction – realproperty(G.S. 160A-270); may belive or electronicReal property(2) Board adopts resolutionauthorizing upset bidprocedure(1) Board adopts resolutionauthorizing sale, describingproperty, specifying thedate, time, place, and termsof sale, and stating that anyoffer must be accepted andconfirmed by the councilbefore the sale will beeffective. May requiredeposit.(2) Advertisement must bepublished at least once andnot less than 30 days beforethe auction. Must containgeneral description ofproperty, the terms of thesale, and a reference to theauthorizing resolution. (Ifelectronic auction, board mayauthorize use of solelyelectronic notice.)(4) Award to highestresponsible bidder or rejectall bids.(1) Unit receives offer onproperty(3) Unit requires offeror todeposit 5% of bid amountwith clerk while upset bidprocedure takes place(5) Highest upset bid thatmeets minimum bid amount(see Step 4) becomes nextofferor, and process beginsagain (starting at Step 1)until no additional upsetbids are received.(6) Award to highestofferor or reject the offer.(3) Auction held.(4) Highest bid reported toboard, which may acceptor reject within 30 days ofwhen bids were received.Sample resolutions and advertisements available online at http://ncpurchasing.unc.edu (click on “Forms”).To determine the correct order of the steps required for each method, follow the numbers.Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000)
Page 2 of 5MethodUse ForCOMPETITIVE METHODS (continued)D. Public auction – personal Personal propertyproperty(G.S. 160A-270); may belive or electronicOTHER METHODSE. Private sale with boardapproval(G.S. 160A-267)Personal propertyvalued at less than 30,000F. Private sale withoutboard approval of eachsale(G.S. 160A-266(c))Personal propertyvalued at less than 30,000G. Exchanges(G.S. 160A-271)Real property;Personal propertySteps: Board ActionSteps: AdvertisementSteps: Other(1) Board adopts resolutionauthorizing official todispose of property atpublic auction. Mustidentify property and setout date, time, place, andterms of the sale.(2) Resolution or noticereflecting contents ofresolution must be publishedat least once and not lessthan 10 days before theauction. (If electronic auction,board may authorize use ofsolely electronic notice.)(3) Auction held.(1) Board adopts resolutionauthorizing an appropriateofficial to dispose ofproperty by private sale ata negotiated price. Mustidentify the property to besold and may, but need not,specify a minimum price.Board approval of eachsale not required.(2) Notice summarizingcontents of resolution shall bepublished once after theresolution is adopted.(3) Sale cannot take placeuntil 10 days after thenotice is published.Notice not required.(3) Board adopts resolutionauthorizing exchange.(2) Notice published at least10 days before regularmeeting of the board,describing the properties tobe exchanged, stating thevalue of the properties andother consideration, andannouncing the council’s intentto authorize the exchange atits next regular meeting(1) Board must approve ofprocedures designed tosecure fair market valuefor all property sold.Official charged withdisposing of property mustkeep record of propertysold.(1) Unit develops atentative agreement for theexchange of the propertyfor full and fairconsideration.(4) Sale complete withoutfinal approval from theboard.Sample resolutions and advertisements available online at http://ncpurchasing.unc.edu (click on “Forms”).To determine the correct order of the steps required for each method, follow the numbers.Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000)
Page 3 of 5MethodUse ForOTHER METHODS (continued)H. Trade-inPersonal property(G.S. 143-129.7)I. Leases (more than 10years)(G.S. 160A-272)J. Leases (more than 1 year,less than 10 years)(G.S. 160A-272)Real property;personal propertyK. Leases (one year or less)(G.S. 160A-272)Real property;personal propertyReal property;personal propertySteps: Board ActionSteps: AdvertisementSteps: Other(4) Board approval is notrequired unless required bylocal policy. Example: Iflocal policy requires boardapproval for purchasescosting 1 million or more,and the cost of the newitems to be purchased is 1.2 million, then boardapproval would berequired.(2) If formal bidding is(1) Unit solicits bids (usingrequired (because theformal bidding if theestimated cost of the items to estimated cost of the newbe purchased is 90,000 oritems is 90,000 or more,more, or because local policy or if required by localrequires it), unit mustpolicy; informal bidding ifadvertise the bid opportunity the estimated cost of theat least 7 days before thenew items is betweenbid opening in the newspaper 30,000 and 90,000, oror electronically or bothif required by local policy).(advertising by electronicInclude in specifications themeans only requires boardopportunity to purchase theapproval). If formal bidding unit’s used property.is not required, advertisement (2) Unit receives bidsis not required.Use procedures for the sale of real property—method A., B., or C. on this Chart. (If leasingreal property for housing for low- and/or moderate-income persons, may use method L. onthis Chart.)(2) Board adopts resolution (1) Notice published at leastauthorizing lease.10 days before regularmeeting of the board,describing the property to beleased or rented, stating theannual rental or leasepayments, and announcingthe council’s intent toauthorize the lease or rentalat its next regular meeting.None required – boardmay delegate authority toenter into such leases.None required.Sample resolutions and advertisements available online at http://ncpurchasing.unc.edu (click on “Forms”).To determine the correct order of the steps required for each method, follow the numbers.Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000)
Page 4 of 5MethodUse ForOTHER METHODS (continued)L. Leases for affordableReal property, but onlyhousingto someone who will(G.S. 160A-278)use the land toconstruct housing forthe benefit of lowand/or moderateincome personsSteps: Board ActionSteps: Advertisement(2) Board adopts resolutionauthorizing lease.(1) Notice published at least10 days before regularmeeting of the board,describing the property to beleased, stating the value ofthe property, stating theproposed consideration forthe lease, and stating thecouncil’s intent to authorizethe lease at its next regularmeeting.(2) Notice published at least10 days before regularmeeting of the board; thenotice shall describe theinterest to be conveyed orleased, the value of theinterest, the proposedconsideration for theconveyance or lease, and thegoverning body’s intention toapprove the conveyance orlease.(1) Notice published once aweek for two successiveweeks, for the first time notless than 10 days nor morethan 25 days preceding thepublic hearing; and the noticeshall disclose the terms of thesale, exchange, or transfer.M. Economic developmentprojects(G.S. 158-7.1(d))Real property, but onlyfor economicdevelopment activitieslisted in G.S. 1587.1(b)(3) Board adopts resolutionapproving the conveyanceor lease.N. Community developmentprojects(G.S. 160A-457)Real property, but onlyfor sale to aredeveloper inaccordance with acommunitydevelopment programas described in G.S.160A-456 and -457(3) Board adopts resolutionapproving the sale,exchange, or transfer.Cities onlySteps: Other(1) The unit shall determinethe probable averagehourly wage to be paid toworkers by the business tobe located at the propertyto be conveyed and thefair market value of theinterest. The considerationfor the conveyance may notbe less than that value.(2) At the public hearingthe appraised value of theproperty to be sold,exchanged or transferredshall be disclosed; theconsideration for theconveyance shall not beless than the appraisedvalue.Sample resolutions and advertisements available online at http://ncpurchasing.unc.edu (click on “Forms”).To determine the correct order of the steps required for each method, follow the numbers.Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000)
Page 5 of 5MethodUse ForOTHER METHODS (continued)O. Disposition to otherReal property;governmentspersonal property(G.S. 160A-274)P. Artistic/historic properties Real or personal(G.S. 160A-266(b))property, but only thetype of propertydescribed in G.S.160A-266(b) and onlyif conveyed to anonprofit in accordancewith G.S. 160A-266(b)Q. Fire departmentsReal property, but only(G.S. 160A-277)for constructing orexpanding firedepartment or rescuesquad facilitiesR. Conveyance to nonprofitorganizations(G.S. 160A-279)Cities and counties onlyS. Conveyance withoutmonetary consideration(G.S. 160A-280)Does not apply to schoolsReal or personalproperty, but only ifconveyed to an entitycarrying out a publicpurpose that the city orcounty is authorized toengage inPersonal property only,conveyed to agovernmental unit,sister city (as defined inG.S. 160A-280),nonprofit, or charterschoolSteps: Board ActionSteps: AdvertisementSteps: OtherBoard approval is required.None required.(1) Board adopts resolutionauthorizing an appropriateofficial to dispose ofproperty by private sale ata negotiated price. Mustidentify the property to besold.(2) Notice summarizingcontents of resolution shall bepublished once after theresolution is adopted.No other proceduresrequired; unit may followits own procedures.(3) Sale cannot take placeuntil 10 days after thenotice is published.(2) Board adopts resolutionauthorizing lease, sale, orconveyance.(1) Notice published at least10 days before regularmeeting of the board,describing the property,stating its value and anyproposed monetaryconsideration, and noting theboard’s intent to authorize thelease or conveyance.(2) Notice summarizingcontents of resolution shall bepublished once after theresolution is adopted.(1) Board adopts resolutionauthorizing an appropriateofficial to convey property.Must identify the propertyto be conveyed and may,but need not, specify aminimum price.(2) Board adopts resolutionapproving conveyance.(1) Notice published at least5 days before regularmeeting of the boardapproving donation.(3) Conveyance cannottake place until 10 daysafter the notice ispublished.(3) Conveyance may takeplace once board adoptsthe resolution.Sample resolutions and advertisements available online at http://ncpurchasing.unc.edu (click on “Forms”).To determine the correct order of the steps required for each method, follow the numbers.Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000)
To determine the correct order of the steps required for each method, follow the numbers. Reference: Lawrence, David M., Local Government Property Transactions in North Carolina (2nd ed., 2000) Method Use For Steps: Board Action Steps: Advertisement Steps: Other COMPETITIVE METHODS
